On Tuesday, Netflix subscriber increase was seen that blew past Wall Street subscriber estimates in the Q4. Netflix subscriber increase was driven by a strong slate of shows that included the final season of the long-running royal drama “The Crown” and David Fincher’s original film, “The Killer.”
Netflix reported it added 13.1 million subscribers in the December, the Q4, its largest-ever increase in subscriber growth, handily exceeding projected gains of 8.97 million. That brings the total number of subscribers to 260 million.
Netflix earnings 2023
“It is becoming increasingly clear that Netflix has won the ‘streaming wars,'” wrote Bank of America media analyst Jessica Reif Ehrlich.
Netflix earnings 2023, the company reported per share earnings of $2.11, falling short of consensus estimates of $2.22 per share. Netflix said the per-share earnings were impacted by a $239 million noncash loss related to currency exchange rates.
Revenue rose to $8.8 billion, topping forecasts and the company’s own guidance of $8.7 billion in the quarter.
Netflix revenue forecast
The streaming giant Netflix said it expects healthy double-digit revenue growth for full-year 2024, as it continues to increase subscribers and invest in its advertising business. Netflix said advertising is not yet a primary driver of revenue growth, but it aims for that to change by 2025.
Netflix growth contributors
The company credited gains to the strength of its intellectual property, including “Squid Game: The Challenge,” a reality show based on its most-watched TV series, new original series such as “All the Light We Cannot See,” feature films like Zack Snyder’s “Rebel Moon: A Child of Fire,” and non-English-language programming, including the third season of “Lupin” from France.
It also cited strong demand for licensed titles such as “Young Sheldon.” Co-CEO Ted Sarandos said Netflix has a “rich history” of breaking some of television’s biggest hits, including “Breaking Bad,” “The Walking Dead,” “Schitt’s Creek,” and more recently, “Suits.”
“I am thrilled that the studios are more open to licensing again, and I’m thrilled to tell them that we are open for business,” Sarandos said during Netflix’s investor livestream.
Netflix’s strategies
Bank of America’s Ehrlich wrote that Netflix is a beneficiary of changing market dynamics, which are forcing media companies to re-evaluate their strategy of retaining movies and television series exclusively for their own streaming services. She called this a “win-win” proposition, which allows Netflix to reduce its investment in higher-risk original production, even as these licensing deals provide other media companies with much-needed revenue.
Netflix said it sees growth opportunities if it continues to improve its programming slate. Along with making inroads in new areas like advertising and games. While the games business is still in its early days, the company said engagement has tripled.
Netflix future plans
Netflix’s plan as per CFO Spencer Neumann is to increase spending on content. He anticipates the streamer would invest as much as $17 billion this year. Though he added, “we want to do it in a smart, judicious, responsible way.”
The company said it continues to invest in and experiment with live programming. Earlier, Netflix and TKO Group Holdings announced a more than $5 billion deal to bring World Wrestling Entertainment’s “Raw”. This was along with some other programming exclusively on the streaming service in January 2025.
Third Bridge analyst Jamie Lumley said the WWE deal demonstrates how Netflix continues to diversify its content strategy.
“This is the company’s largest move into live programming yet and will bring a large volume of content to the platform each year,” said Lumley.
Netflix shares up
Netflix shares were up 8.3% in after-hours trading. The stock gained 65% during 2023.
